RE:RE:RE:RE:RE:RE:Why voting yes is not a bad ideaMacloud1 wrote: Tiny I am no expert but that is what think it is a currency correction entry because our revenue is in US dollars and we operate in Canadian dollars. I also accounts for the difference on the loan . If you borrow 100,000 dollars when the dollar is 1.34 and you repay it when it is 1.28 then you have to account for the 6,000 dollar difference as a gain . I might also be out to lunch on my caculation . I arrived at that figure by dividing the 2017 foreign exchange by the 2017 sales and got 17% and then applied that to the 2018 projected revenue.
In your example above, I would consider that $6K to be income on an "investment" and not projectable. Just the opposite.
It is not merely converting C$ to $US or vice versa.
It is profit made on a currency fluctuation and could just have easily been a loss.
Consequently, I believe your projected FE profit of $52.3MM in 2018 is completely erroneous and unsupportable.
Which means no dividend if debt is to be reduced and $10MM is to be sucked up by KDI. That assumes that we break even on FE, but can't we expect that (FE) to be a loss in some years?